Question

Increasing usage by existing customers is one way to promote growth in sales. Imagine that you are the brand manager for the following brands. How would you increase usage by existing customer of each?

• Amazon

• Starbucks

• Doritos

Answer 1

1. Amazon: Amazon is a major US e-commerce company with head quarters in Seattle, Washington, USA. Its major business is selling of books, apparel and electronic products.

Promotion strategy: If you observe carefully most of the customers in amazon buy during beginning of month. This imply that most of the amazon customers are salaried class. Amazon can negotiate with vendors to provide grace period for its customers and start buy now pay later kind of programs. This will increase sales during non peak days.

1. Starbucks: Starbucks is an American coffee company which is head quartered in in Seattle, Washington, USA. Its major business is selling of coffee.

Promotion strategy: Company should build its portfolio with other products like breakfast, meals and snacks. Company should promote other products like burgers, sandwich and soft drinks etc. this increases sales and customer value. This also increase revenue per customer. Company should provide cash back coupons to customer who can use it when they come next time. Company can also create its own wallet and pay all promotion and discount money directly to wallets of customer.

1. Doritos: Doritos is an American brand of flavored tortilla chips which is head quartered in USA. It is produced by Frito Lay owned by Pepsi co.

Promotion Strategy: Doritos should type up with well established fast food chains like Starbucks, Mc Donald’s etc. this increases sales of Doritos. Doritos can run buy 1 get 1 free offers to increase sales.